LED industry is bound to re shuffle vertically integrated industry consensus

LED industry as a pioneer in the domestic energy-saving emission reduction industry, its development has been described as fast. However, recent media reports, there are nearly 100 LED companies in Shenzhen closed down, at the edge of the loss of 90%.

The first half earnings display company LED's famous neon released, due to the economic environment becomes poor, leading to customer order lines generally shrinking. And this is just a portrayal of the entire domestic LED industry is facing a cold winter.

LED's brief spring

LED lighting industry as a national energy-saving emission reduction focus of the sunrise industry, since 2008, the country began to promote efficient lighting products, the market prospects for the industry. When the Ministry of science and technology of China first proposed ten city million light LED lighting demonstration project, and in accordance with the LED lighting compared with traditional lighting incremental investment of 30% ~ 50% subsidies. The city, which subsequently joined the government, has soared to 42 cities.

Since the state subsidies for the LED industry is not limited to LED street light subsidies, LED upstream chip production machines also have a high subsidy, reportedly 1 MOVCD machines, government subsidies on more than $three million.

So the traditional lighting companies almost all turned investment in the LED industry, Kerry also joined the investment tide, only the first half of this year to obtain local government subsidies to 43 million 100 thousand yuan. 19 sets of MOCVD equipment zhenminglee currently has (LED wafer production equipment) are put into operation, the monthly output of up to 55 thousand LED epitaxial wafer chip.

It is reported that, in order to complete the street lamp for LED lights program, a large number of local government investment. Wuhu municipal government in addition to the three optical company huge product orders, there are more than 500 million yuan of the purchase subsidies. Shenzhen city proposed to participate in government investment projects LED demonstration project of enterprise, according to the lamp price to give 10% of the grant, and discount for 3 years, for the enterprise investment project LED demonstration project of enterprises, give subsidies in accordance with the price of 30% LED lamps.

But this investment frenzy does not mean that the domestic LED companies already have adequate technical reserves and market channels.

Academy of Social Sciences, an unnamed researcher said, now the domestic family are basically using the ordinary fluorescent lamp, incandescent lamp with little more than 60 watt incandescent lamp, so out of map and promote LED lighting industry development, is an illusion of LED market expectations. As for LED lighting products by the government subsidies are only a small number of large enterprises LED. But now the whole industry crazy investment in LED lighting industry.

It is reported that the domestic LED industry is not an aggregation of industrial resources, small and scattered enterprises, the concentration is not high. Many enterprises low-level redundant construction, due to poor market conditions, resulting in LED customer orders generally shrink. LED capacity oversupply, market prices fell rapidly.

Integration soon

In the face of domestic LED industry disorderly investment and repeated construction, major projects of semiconductor lighting, chief expert of Semiconductor Institute of Chinese Academy of Sciences director Li Jinmin has pointed out that the massive disorderly LED industry investment will not last for a long time, when the entire industry to a certain stage of development, the domestic semiconductor lighting industry will re shuffle, the next 3 years, the industry is bound to there will be a number of advanced technology and excellent enterprise talent shows itself, become the leader of LED industry.

At present, out of the promising market prospects, the domestic investment in the LED industry has more than 30% annual growth. But the industry has serious utilitarian phenomenon, although there are many companies to invest in the LED industry, but the real precipitation down to engage in LED product technology research few enterprises, many enterprises only satisfied with the purchase of advanced equipment to do a manufacturer in the package link, to earn meager profits and OEM fees, the bulk of that master.

In fact, LED lighting industry as the focus of energy-saving emission reduction industry, the development of the industry not only relates to a base material and chip technology, but also relates to the field of light, electricity, heat, chemical and other equipment, is a complex system engineering typical multidisciplinary fusion. Some engaged in the production of LED package of domestic enterprises in the whole production process, the epoxy resin could be used in Taiwan, the United States by Japanese companies with silicon resin, fluorescent powder, packaging structure or imitation of PHILPS Lumileds keshui or OSRAM, the whole industry chain is relatively long.

Although the domestic LED industry is facing a variety of difficulties, but LED lighting products with excellent energy-saving effect, and a long life. Not only a large number of domestic enterprises to invest in LED, foreign giants Panasonic and PHILPS also intends to occupy a leading position in the Chinese market and the international market. Panasonic is launched in 2015 to 10% of the global market share of the global market share of 2 trillion and 600 billion.

Now the domestic LED industry has entered a critical period of development, technological upgrading is inevitable. After two years of large-scale expansion of production, this year's oversupply of chips, prices fell significantly, while the application market has not really opened, LED corporate profits generally reduced, the industry will advance into the shuffle period.

Vertical integration has become the industry consensus. Jinsha River venture capital managing director Wu Shenjun believes that the LED industry who can vertically integrate, who is the big winner, is the future of GE. At present, resolving the contradiction between the customer's individual needs and the scale of production is the challenge that the LED industry must face. Only rely on capital bonds and industrial integration, in the LED shuffle in the emergence of independent brands, international competitiveness of local enterprises.